Home > Food prices, Inflation, stagflation > Corporate Margin Squeeze Coming As Producer Prices Soar 0.8% On Expectations Of 0.2%

Corporate Margin Squeeze Coming As Producer Prices Soar 0.8% On Expectations Of 0.2%

“Following concerns that China will be unable to funnel liquidity into its slowing economy due to latent inflation, the last thing the world needed was to learn that inflation, in this case Producer Prices, was still running at a blistering pace in the US. Alas, that is precisely what it got after September PPI printed up 0.8% from the month before (following the unchanged print in August) and 6.9% YoY. The number was above even the highest expectation from Wall Street strategists (consensus was 0.2%). And while PPI ex food and energy was up just 0.2%, try telling that to those 99% of the population whose income is barely sufficient to buy the, you guessed it, food and energy, which rose by 0.6% and 2.3% respectively.

Via Zero Hedge

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  1. October 18, 2011 at 12:11 pm | #1

    Producers get squeezed in the middle, just like everyone else. In the debt game, what goes around, comes around. Since producers are an interface between real things and debt, they are in a focal hot zone in the economy. Rising costs and downward pressure on retail sales are a debt of modern life.

    http://georgesblogforum.wordpress.com/2011/10/06/crash-course/#more-742

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